WOOL MARKETS FIRM

Southland Times, Issue 23308, 18 September 1937, Page 14

WOOL MARKETS FIRM

AUSTRALIA’S BIG CHEQUE

DEPRESSION RETURNS DOUBLED

“During the past two seasons the wool clip of Australia has contributed over £120,000,000 to Commonwealth revenue, or nearly twice the amount received in the two lowest depression years,” said Mr Harold Bell, chairman of Winchcombe, Carson, Limited, at the anual meeting in Sydney recently. “Indications point to further handsome returns for this season’s clip,” Mr Bell continued. “I am not perturbed that Australia will not find customers for the increased quantities of wool she will probably grow in the years ahead. Of late we have sold less wool to some of our previously largest customers. But, just as Australia’s boundaries in world political developments have extended during the past 17 years, her wool trading frontiers are also expanding. PURCHASES BY MEXICO “Before the war less than 12 countries bought our clip. As a result of the world-wide increase in woollen textile manufacturing, wool was exported from the Commonwealth to no fewer than 36 countries during the past season. A few years ago Mexico was unknown as a consumer of Australian wool, but she bought 2400 bales in the past 12 months. “Substitute fibres have not so far vanquished wool. They may have kept its price in check, but on the evidence to date they have helped rather than hindered its consumption, except in the case of Germany and Italy, where imports are restricted for monetary reasons.

“Production of fat lambs is being given increased attention, and the prices for them have provided very remunerative returns. During the year ending June 30 last 4,942,000 carcasses of lamb were exported from Australia to Great Britain. The total is 1,339,000 carcasses above the 1933 level. But shipments to other destinations were only 40,630 carcasses. An extraordinary expansion has, therefore, occurred in our lamb trade with the United Kingdom. Those lambs, including their skins, produced approximately £5,000.000 for growers. SOLE MARKET FOR LAMB

“In contrast to the gradually extending outlets for wool, new markets for lamb are not developing. We are almost wholly dependent Upon the British Isles for lamb exports. The lamb industry may be overdone in Australia unless new and substantial markets are found. At present no such outlets are in sight. “Every prospect exists for a steady consumption of all the Merino wool the Commonwealth can grow. While Australia only grows about 25 per cent, of the world’s annual clip she produces nearly 55 per cent, of the yearly supply of Merino.”